CCL Industries signs binding agreement to purchase Germany-based Advanced Packaging Films for approximately C$9M; new business unit will fall under global food and beverage division within company's CCL Label subsidiary
October 24, 2013
– CCL Industries Inc. ("CCL") CA:CCL.A +0.69% CA:CCL.B -0.29% , a world leader in specialty label and packaging solutions for global corporations, small businesses and consumers announced today that it has signed a binding agreement to acquire the assets of Advanced Packaging Films GmbH in Schkopau, near Leipzig, Germany, for approximately $9 million in cash and assumed debt. The new business unit will trade as Advanced Performance Films and will be an integral part of the CCL Label global Food & Beverage business headed by Guenther Birkner, President. The transaction is expected to close on October 31, 2013.
Mr. Birkner commented, "This new capability allows us to design proprietary, specialty films for new sleeve and pressure sensitive label applications while improving our supply chain performance for part of today's demand. It is an important strategic step as we seek to accelerate growth with global brand owners in the premium segment of this market. We remain the world's largest trade buyer of heat shrinkable films for label applications from our valued supply partners."
Geoffrey T. Martin, President & CEO of CCL Industries added, "Over time we expect to develop more capabilities across the company in the materials science field as we seek to innovate new ideas for customers. Bolt on acquisitions like this could become an important part of that strategy."
CCL Industries employs approximately 9,600 people and operates 87 production facilities in 25 countries on 5 continents with corporate offices in Toronto Canada, and Framingham, Massachusetts. CCL Label is the world's largest converter of pressure sensitive and film materials for a wide range of decorative, instructional and functional applications for large global customers in the consumer packaging, healthcare, automotive and consumer durables markets. Extruded plastic tubes, folded instructional leaflets, precision printed & die cut metal components with LED displays and other complementary products and services are sold in parallel to specific end use markets. Avery is the world's largest supplier of labels, specialty converted media and software solutions to enable short run digital printing in businesses and homes alongside complementary office products sold through distributors and mass market retailers. CCL Container is a leading producer of impact extruded aluminum aerosol cans and bottles for consumer packaged goods customers in the United States, Canada and Mexico.